The ledger of Windsor, Inc. at the end of the current year shows Accounts Receiv

Question

The ledger of Windsor, Inc. at the end of the current year shows Accounts Receivable $79,100; Credit Sales $772,160; and Sales Returns and Allowances $43,350. (a) If Windsor, Inc. uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Windsor, Inc. (b) If Allowance for Doubtful Accounts has a credit balance of $1,069 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected (c) If Allowance for Doubtful Accounts has a debit balance of $530 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to determines that Matisse's $984 balance is uncollectible. to be 11% of accounts receivable. be 9% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit a) Bad debts expenses a/c 984 Account receivable a/c 984 b) Bad debts expenses a/c (79100*11%-1069) 7632 Allowance for doubtful a/c 7632 c) Bad debts expenses a/c (79100*9%+530) 7649 Allowance for doubtful a/c 7649

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